A Research On Heilongjiang Provincial University Financial Risk Control

In recent years, higher education in China has achieved rapid developments. With market mechanism having been introduced into colleges and universities, financial channels actively expanded, a school system invested mainly by state financial education funding and supplemented by market multi-channel raising funds has been established. The evolvement of higher education is dependent upon the scale of enrollment and the quality improvement of the whole nation. However, with enrollments for college students going up, capital shortage has become a serious problem that has hindered the rapid developments of colleges and universities. The extraordinary expansion of higher education institutions, the large-scale debts to run them, arid expansion acceleration have all contributed to the financial risk which is becoming increasingly evident in colleges and universities and the transformation of management from zero-risk to risk. For Heilongjiang provincial colleges and universities, whose regional economy is relatively backward and which has severe shortage of education resources, this kind of risk is displaying even more noticeable. Consequently, how to measure and hedge the financial risk problem has constituted a major task for the administrators of Heilongjiang provincial institutions of higher education. Thus, working out a set of methods to measure, warn and control the financial risk is of primary practical significance to college administrators.This essay is meant to apply some basic theories concerning financial and risk management with higher education institutions, combine them with the current overall situation of Heilongjiang province-run colleges and universities, and summarize all the risks involving raising funds, investment and financial administration, and analyze at length the peculiarity and contributing factor to the financial risk to be run by Heilongjiang provincial universities. In view of the financial risk content, a variety of methods such as AHP, efficacy coefficient, expert investigation have been applied in this article and established an index system to measure the risks, and then proceed to establish a system to measure and warn and control the risk, and in the meantime make an analysis of them in the light of some cases. In the end, in accordance with the economic significance the three kinds of risks and measure index represent, a number of countermeasures and suggestions are proposed in this essay to take control over the financial risk to be taken by institutions of higher education affiliated to Heilongjiang province.